EU Commission Publishes Proposed Delegated Regulation under the AIFMD

On December 19, 2012, the European Commission published its proposed delegated regulation (the “Delegated Regulation”) on exemptions, general operating conditions, depositaries, leverage, transparency and supervision under Directive 2011/61 (the “AIFMD”) on alternative investment fund managers (“AIFMs”). The European Parliament and the European Council have three months to review the Delegated Regulation. They have the right to block the Delegated Regulation from entering into force (not to amend it), but they are highly unlikely to do so. As a result, the Delegated Regulation is likely to enter into force unchanged.

Separately, the European Securities and Markets Authority published consultations on key concepts under the AIFMD and is expected shortly to publish guidelines on the remuneration policies AIFMs are required to implement consistent with Annex II to the AIFMD.